In the price fixing game, when both firms choose their dominant strategy, each firm will generally earn more profits than when both firms choose the alternative strategy.

The open access equilibrium is usually

a. Economically efficient but ecologically unsustainable Incorrect b. Economically efficient and ecologically sustainable c. Economically inefficient but ecologically sustainable d. Neither economically efficient nor ecologically sustainable e. Highly profitable for resource users

Russia and Qatar made the first serious moves in October 2008 toward forming an OPEC-style cartel for natural gas. The two strategies these countries face are to comply with the cartel agreement or to cheat on the cartel agreement

If both countries comply, the economic profit for each will be $140 million. If one country cheats, that country earns $200 million in economic profit and the other country will have an economic loss of $10 million. If all countries cheat, they break even. What is the outcome of this game if it is only played once? A) Each country will comply with the cartel agreement. B) Two countries will comply and one will cheat, but we cannot predict which one will cheat. C) One country will comply and two will cheat, but we cannot predict which ones will cheat. D) None of the countries will comply with the cartel agreement.